Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls, and distributes aero structures, aircraft components, accessories, subassemblies, and systems worldwide. The company operates through four segments: Integrated Systems, Aerospace Structures, Precision Components, and Product Support.
Take a look at the 1-year chart of Triumph Group, Inc (NYSE: TGI) below with the added notations:
With the exception of two months during the summer, and drop in May, TGI has been trading overall sideways for most of the past year. During most of that time, you will see that the level of $29 (blue) has commonly appeared as either support or resistance. TGI appears to be headed back up to that level now.
The Tale of the Tape: TGI has a key level at $20. A trader could enter a long position on a break above that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a rally up to $29.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT